Moody’s Investors Service says an “unprecedented” 20% of covered-bond programs in the Europe, the Middle East and Africa market are on review for downgrade. Moody’s notes that 31% of the programs are in the three EMEA countries where covered bonds are on review and two are on negative outlook. The credit rating agency adds that “countries with elevated sovereign risk are more likely to see both issuer downgrades and lowering of [timely payment indicator] levels, as the strength of both sovereigns and financial systems as a whole are challenged.”

Click here to read the release from Moody’s Investors Service.